Jeremy Grantham Says SpaceX IPO Could Signal AI Bubble Top

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Jeremy Grantham, co-founder of GMO and known for calling the Dot-com bubble top, warned that the massive $75 billion IPO of Space Exploration Technologies may be a sign that the AI-driven market rally is nearing a peak. In a CNBC interview, Grantham noted that the market is the most expensive in history, driven by heavy investment in artificial intelligence, similar to the internet frenzy of the late 1990s. While SpaceX is not purely an AI company, it invests in AI and CEO Elon Musk has proposed building AI data centers in space, and Grantham sees the high-profile IPO as reminiscent of big internet stock debuts before the Dot-com crash. He cautioned that the timing of any top is uncertain, and investors should avoid panic selling or market timing, instead considering reducing AI exposure while maintaining a long-term buy-and-hold approach.